DECOMMISSIONING | SPECIAL REPORT


EDF Energy’s 2021 estimate of the total undiscounted decommissioning liabilities of the seven advanced gas cooled reactor stations plus the Sizewell B PWR


with its existing nuclear decommissioning portfolio. Magnox Ltd may be able to realise efficiencies from deconstruction work in the years immediately after transfer of the stations. NDA’s ability to deliver benefits from combining Magnox and AGR sites will depend on the quality of the plans developed in the years prior to transfer. “By providing clarity over the future decommissioning of


and the NDA transporting it to storage at Sellafield could have “widespread repercussions”. Early unexpected closures may increase costs. The premature closure of Dungeness B in Kent is used to


illustrate the impact of uncertainty. The station had been in extended outage since 2018, after it was taken offline. In June 2021 EDF Energy announced closure of the station with immediate effect. As a result of this early and unplanned closure, the report


says that EDF estimates it will cost an additional £0.5-1.0 billion to defuel Dungeness B. EDF said it will start defueling as soon as regulatory permissions are granted, which is expected in 2023, but the station will take longer to defuel than the other six AGR stations, due to extra preparation time and its unique design. Dungeness B’s reactors are around 25% bigger than other AGRs and the design of the fuel route has limitations. Only two flasks of fuel can transported to Sellafield each week, compared with three flasks for the other stations.


Plans for oversight BEIS, EDF Energy and the NDA have taken steps to establish joint arrangements to plan and oversee defueling, which NAO considers sensible. These arrangements will be tested once defueling accelerates and all parties operate under the revised decommissioning agreements. Once defueling is complete, details will be agreed of


exactly what, when and how EDFE will transfer facilities to the NDA and Magnox Ltd. NDA warns that previous transfers in the nuclear sector took longer than expected, and the risks will need to be managed for the AGRs’ transfer. The long-term benefits of taking the AGR stations back


into public ownership will depend on the ability of Magnox Ltd to deliver efficiencies from combining the AGR stations


second-generation nuclear power stations, the government has created incentives to deliver a safe and efficient clean-up,” said comptroller and auditor general Gareth Davies. “However, many financial risks remain, and if poorly managed costs could escalate. Success will only be achieved if all parties work effectively together.” He added: “Government needs to maintain a clear view of how the nuclear decommissioning programme is performing as a whole, and given the large amounts of public money at stake it must act decisively should performance begin to lag.”


More clarity, but substantial risks The report concludes that the commercial and delivery agreements signed in June 2021, improve clarity over the future of the AGR stations. By providing EDF with a financial incentive to complete defueling of the stations efficiently, the revised funding agreement offers the prospect of securing better value for money. However, the defueling programme carries substantial risks which, if poorly managed, could result in costs increasing significantly. Success will depend on how effectively EDF and the NDA


work together. In terms of preparing to transfer the stations, BEIS is relying on continuing goodwill between EDF and the NDA to resolve potential differences. If it is to achieve value for money from the new


agreements, BEIS will need a clear view of how the programme is performing as a whole and will need to act quickly and decisively should problems emerge. Initial ambitions that the existence of the Nuclear Liabilities Fund would help eliminate taxpayers’ exposure are being tested, with rapid increases in the estimates of decommissioning costs outstripping investment returns. The history of the AGR fleet provides lessons for other long- term programmes carrying significant end-of-life liabilities, including new nuclear energy programmes. ■


Left: Torness in Scotland is expected to be one of the last AGRs to close


www.neimagazine.com | March 2022 | 15


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